Perhaps the primary skill lacking in the 'traditional' municipal organisation is a strategic understanding of partnerships, their benefits and the opportunities they create. That is not to say there is not an awareness of the issues, but evidence does suggest that misinformation and preconception play key roles in forming councillors' and administrators' views, and attitudinal change is necessary to remove scepticism where it is not warranted. Conversely, there are some municipal managers who see partnerships with the private sector as the panacea to all municipal illnesses, and are unable to critically evaluate the pros and cons of private sector involvement in a particular context. There is little doubt that training in PPPs assists municipal officials to make informed decisions that are more consistent with broader urban management goals. This will include, for example, the ability to select options - to identify appropriate alternative options for a diverse range of municipal functions, evaluate private sector participation (PSP) options and compare them against other forms of delivery.
In the pursuit of more poverty-focused partnership arrangements, it is necessary for municipalities to be able to consider private sector participation in the context of local or national poverty-reduction strategies. This issue has been addressed in detail in Chapter 5, where the discussion focused on the importance of understanding the lessons of poverty reduction, and the processes through which a formal private sector arrangement will add value to, and not undermine, poverty reduction efforts. Still more ambitious is the understanding of how private sector participation in basic services can be developed to converge with poverty-reduction activities. As we have seen, this involves a strategic insight and a practical capacity to create a coherent coalition of stakeholders and activities. In terms of process, it involves community participation and demand-responsive decision-making, as well as the involvement of NGOs and ISPs. Municipalities need the vision and skill to bring these functions and actions together and it is most likely that skills development is required to this end.